West Kensington leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher amount will be payable. Flat owners in West Kensington will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some cases you may not qualify. There are also strict timetables and formalities to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle West Kensington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
During the course of the last few months Aarav, came seriously close to the 80-year threshold with the lease on his leasehold apartment in West Kensington. In buying his home two decades ago, the length of the lease was of no significance. Luckily, he recognised he needed to take steps soon on Extending the lease. Aarav was able to extend his lease just in the nick of time last August. Aarav and the landlord who owned the flat above in the end settled on an amount of £5,000 . If he failed to meet the deadline, the amount would have become more costly by a minimum £1,075.
Dr S González owned a recently refurbished flat in West Kensington in October 1996. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Identical flats in West Kensington with 100 year plus lease were valued around £295,000. The average amount of ground rent was £45 invoiced annually. The lease elapsed in 2099. Taking into account 74 years remaining we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a West Kensington residence is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case related to 1 flat. The unexpired term was 37.79 years.